Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
Answer:
Buys finished products and sells them for a profit
Answer:
9.16% and 5.95%
Explanation:
The attachment is shown below:
Given that,
Present value = 108% × $1,000 = $1,080
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 10% ÷ 2 = $50
NPER = 30 years - 7 years × 2 = 46 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 9.16%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 9.16% × ( 1 - 0.35)
= 5.95%
Answer:
This question is incomplete, the options are missing. The options are the following:
A) I only
B) II only
C) III only
D) I and II only
E) I, II and III
And the correct answer is the option B: II only: Unless something is done, our firm will not be the most effective and efficient long-term supplier.
Explanation:
To begin with, the concept known as SCM refers to the Supply Chain Management that is the system whose main purpose is to take care of the management of the flow of the services and goods that involves the raw materials needed for the production of the product of the company and also of the work-in-process inventory as well as the finished goods. That is why that this system is the one that is in charge of the whole flow of the product of the company from its origin in the process until the final line that is the consumption of it. Therefore that if there is a lack of fit between what the customer wants and what the SCM is best able to provide then if nothing is done, the firm will not be the most effective and efficient long-term supplier.
Answer:
c. Vertical integration
Explanation:
Vertical integration is a strategy in which a manufacturing entity owns or controls its channel of raw materials supply or products required, distribution chain, or retail locations to control its supply chain.
It affords the company some form of advantage by allowing them control the process, reduce costs, and improve efficiencies.
As such, where Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process.
This is an example of Vertical integration.
